diff --git a/labjs.module b/labjs.module
index 4000a2d..b742fe9 100644
--- a/labjs.module
+++ b/labjs.module
@@ -14,14 +14,32 @@ function labjs_init() {
   // Loads our loader first
   // Normally we use JS_LIBRARY, but Google Analytics module uses JS_LIBRARY-1,
   // then we use JS_LIBRARY-10. We should look for a more proper approach.
-  drupal_add_js(labjs_get_path(), array('group' => JS_LIBRARY-10, 'weight' => -50, 'every_page' => 1, 'inline' => TRUE, 'preprocess' => FALSE));
+  drupal_add_js(labjs_get_path(), array(
+    'group' => JS_LIBRARY-10,
+    'weight' => -50,
+    'every_page' => 1,
+    'preprocess' => FALSE,
+  ));
 
   if (module_exists('advagg')) {
     // Add in LAB.js init function.
-    drupal_add_js(LABJS_EXCLUDE . "\n" . 'var $L = $LAB.setGlobalDefaults({AlwaysPreserveOrder:true});', array('group' => JS_LIBRARY-10, 'weight' => -49, 'every_page' => 1, 'type' => 'inline', 'preprocess' => TRUE));
+    drupal_add_js(LABJS_EXCLUDE . "\n" . 'var $L = $LAB.setGlobalDefaults({AlwaysPreserveOrder:true});', array(
+      'group' => JS_LIBRARY-10,
+      'weight' => -49,
+      'every_page' => 1,
+      'type' => 'inline',
+      'movable' => FALSE,
+    ));
 
     // Makes Google Analytics work.
-    drupal_add_js(LABJS_EXCLUDE . "\n" . '$L = $L.wait(function() {Drupal.scriptsready=true;jQuery(document).trigger("scripts-ready");});', array('group' => JS_THEME+101, 'weight' => 20, 'every_page' => 1, 'type' => 'inline', 'preprocess' => TRUE, 'scope' => 'footer'));
+    drupal_add_js(LABJS_EXCLUDE . "\n" . '$L = $L.wait(function() {Drupal.scriptsready=true;jQuery(document).trigger("scripts-ready");});', array(
+      'group' => JS_THEME+101,
+      'weight' => 20,
+      'every_page' => 1,
+      'type' => 'inline',
+      'scope' => 'footer',
+      'movable' => FALSE,
+    ));
   }
 }
 
@@ -216,7 +234,24 @@ function labjs_advagg_modify_js_pre_render_alter(&$children, &$elements) {
     return;
   }
 
-  static $init_encountered = FALSE;
+  // Detect if $LAB.setGlobalDefaults is used in this scope. If it is, then set
+  // $init_encountered to FALSE so the LABjs loader code doesn't get LAB-ed. If
+  // it is not detected, assume the LABjs loader code will be found in another
+  // scope.
+  foreach ($children as $key => &$values) {
+    // Do not LAB.js anything until "$LAB.setGlobalDefaults" has been seen.
+    if (!empty($values['#value']) && strpos($values['#value'], '$LAB.setGlobalDefaults')) {
+      $init_encountered = TRUE;
+      break;
+    }
+  }
+  if (!empty($init_encountered)) {
+    $init_encountered = FALSE;
+  }
+  else {
+    $init_encountered = TRUE;
+  }
+
   $labjs_ready_key = FALSE;
   $drupal_settings_key = FALSE;
   foreach ($children as $key => &$values) {