Yes that is a pacifier in his mouth. I asked him to "fetch it up" and he picked it up the right way.
Thanks for the rescue link Zen. I totally believe and support the local rescues here but we wanted a hunting dog. Unfortunately with labs there has been so much backyard breeding that you just don't know what you are getting...hips/eyes/elbows etc. My breeder takes in rescues and helps them find "pet" homes all the time. If it was just a pet and I didn't have small children I would be all about the rescues. I donate and help out in anyway I can because yes there are too many unwanted animals out there.
It makes me cringe when someone says they want to breed their dog because its so nice and cute. UGH!!!