Physically, elasto-plasticity does act like damping, in the sense that creating the plastic deformation requires energy which is then "locked up" in the material as residual stresses and strains.
Depending on your problem, you probably want to include some other source of damping in your dynamics model, otherwise you are likely to get undamped elastic vibrations of the structure which continue for ever, after there is no further change in the plastic deformation.
If there is no physical source of damping that you want to model explicitly, you could use Rayleigh damping (damping matrix = $\alpha M + \beta K$ for some constants $\alpha$ and $\beta$), or use a time-stepping algorithm which includes some numerical damping.
Including "non-plastic" damping that is equivalent to a Q factor of say 50 for the lowest linear-elastic vibration mode of the structure would be a reasonable starting point. Many real-world structures have damping of that order of magnitude caused by things like friction between the structure and its restraints (which are nominally modeled as perfectly rigid), aerodynamic damping caused by the motion of the surface of the structure transferring energy into the air, etc, etc.
Note that "hysteretic damping" caused by the changes in the elastic strain energy of the material is typically much smaller (by one or two orders of magnitude) than the effects mentioned in the previous paragraph, at least for typical metals used in engineering.