Hip Dysplasia is VERY common in Labs .. it sounds like your pups came from a really really bad breeder who didn't health test at all. Have you told the breeder about your problems? Tell her to stop breeding while youre at it

My sister rescued a Black Lab/Pointer, and he has minor hip dysplasia. He's only 3 years old now, and it hasnt been painful or severe enough to need medication, but I'm sure it will in a few years when arthritis sets in. He lays like your dog does, "froggy-style", and when he sits he is totally off-balance and puts very little pressure on his right hip, he also walks funny like your pup. All you need to do is ask the Vet to take X-rays of your Labbie's hips.. if the dysplasia is noticable, a good Vet can feel the hips and determine if there's a problem. Definitely take him to the Vet thats farther away, if you don't feel comfortable with your local Vet. Good luck, I really hope your boy is ok!!