The lawsuit claims Biffle recorded his ex-wife and ex-mother-in-law on a digital video recorder and showed that video to other people.
The lawsuit says Biffle said under oath that the hidden cameras were installed for security because he believed his maids were stealing.
Biffle and his wife divorced in 2015.
Biffle raced in NASCAR for two decades before stepping down this year and moving into a TV analyst role.
This lawsuit raises serious questions over home surveillance and what's allowed in your own home.
Generally speaking, legal experts say you can have hidden cameras but not in a place where people have a reasonable expectation of privacy, such as a bedroom or bathroom.