In the preceding paper, Part I, the transition from linear to nonlinear behavior for electrorheological (ER) suspensions under start-up of steady shear flow was found to first arise from the slight rearrangement of unstable structures. In this paper, we investigate the transition to nonlinear behavior for ER suspensions under oscillatory shear flow, focusing on the role of the rearrangement of unstable structures, and employing experimental and simulation results. Again, we find that nonlinear deformation first arises from these rearrangements, as opposed to the gross rearrangement or rupture of particulate chains. The Fourier transform of the simulated time-dependent shear stress is employed to quantify the dependence of the critical strain on the deformation frequency and electric field strength. The predicted behavior is consistent with experimental trends. Methods for verifying the predictions are discussed, as well as possible avenues for exploiting this information in improved operating strategies and improved ER fluids.