UPS lost a package, they want me to resign it for free. Doesn’t seem fair to me? Has this happened to anyone else?
For free, a re-sign that UPS lost the package on? Me personally, no way, Jose, and I wouldn’t care what client tried to pull that on me. The answer is no.
I agree with FBagnato123 -
Do you have the receipt from UPS to prove you handed it off? Hopefully you didn’t use a drop box. If you have a relationship with this hiring party that you want to maintain you may offer them a discount for the second signing…but free Yeah - no
And how do you know UPS lost it? Did you try to track it? I sent a package back once with a check clipped to the HUD (a few years ago) - they called me a few days later - said no check; told them I had sent it and stapled it to the HUD - they said they didn’t have it. Come to find the front desk opened it and the check came loose - they found it in the FedEx envelope in her trash.
“they want me to resign it for free.”
No. The business entity that lost the package [UPS per your presumed research] would be responsible for remuneration of the fee.
“Doesn’t seem fair to me?”
Correct, not fair and inappropriate. Of course, the hiring party can ask, but it’s an unreasonable request. Reference the first note above.
“Has this happened to anyone else?”
In my direct experience, no, it’s not happened for a shipper to lose the package nor for a demand of a re-sign for No Fee for the error/lost package of a separate business entity.
NOTE: Agree with LindaH-FL above about offering a discounted fee, if you intend to maintain a business relationship with the hiring party. 
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