I have posted about this issue before, and found a few other people who have had the same issue with no solutions found.
I am developing an Android app that submits a JS
Why do you use Google Play Services Location API?
The only new feature provided by Play Services is Geofencing. From your answer i assume that you don't want to use Geofencing but just "usual" location requests.
The Android platform provides a great API for such requests which does not requires Google Play Services. I never had the problem you described when using it.
Note that although Google claims the Play Services to be better than the Android API, this is not true since API 9 (Android 2.3), as long as you use the newer LocationManager.requestLocationUpdates
methodes that don't require a provider to be specified.
See: http://developer.android.com/guide/topics/location/strategies.html