The lawsuit, filed by former Jets massage therapists Christina Scavo and Shannon O'Toole, alleges the quarterback made sexual overtures to them and when they refused they were no longer called in to work, ABC reported.
The women said the team's locker room and training camp were "a hot bed of sexual harassment, sexism and inappropriate behavior," the report said.
"Unfortunately, the plaintiffs never reported the allegations to the Jets, either during or after the conclusion of their work," a team statement said.
"The case against the Jets is completely without merit and we look forward to defending the matter in court, where we are confident that the Jets will prevail."
The lawsuit also names Lisa Ripi, who was in charge of providing the team with massage therapists.
Scavo alleges Favre wanted a sexual threesome with her and another therapist in 2008. The suit says her work assignments ended after her husband demanded that Favre stop harassing her.
Favre, a longtime Green Bay Packers star, played for the Jets in 2008, then went to the Minnesota Vikings.
ABC said it got no response for comment on the lawsuit from Favre's agent.
The lawsuit comes just weeks after the NFL fined Favre $50,000 in a sex scandal involving a female Jets employee. The league investigation centered on voice mails inviting her to his hotel room and he allegedly sent lewd photos of himself to her in text messages.
The 20-year NFL veteran admitted to the voice mails but denied sending the text messages.